Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 155 Original Sheet No. 155 : Effective


13.3 Operational Balancing Agreements


(a) Pipeline may enter into OBAs for the purpose of minimizing

operational variances with respect to the receipt of gas by

and the delivery of gas from Pipeline’s facilities. To

facilitate such determination of variances on a timely

basis, Pipeline and OBA Party shall agree in the OBA on

necessary measurement and accounting procedures.


(b) Pipeline shall have no obligation to negotiate and execute

OBAs with any OBA Party that:


(1) is not creditworthy as determined under GT&Cs Section

3, wherein references to Shipper shall refer to OBA



(2) does not maintain dispatching operations that are

staffed on a continuous, around-the-clock basis every

day of the year;


(3) would subject Pipeline to additional governmental



(4) does not commit to timely determination of variances

based on reasonable available measurement technology;



(5) has not demonstrated operational consistency in using

its natural gas facilities commensurate with an OBA

relationship over a minimum period of three (3)



(c) Nothing in this Section 13.3 nor in any OBA shall limit

Pipeline’s rights to take action as may be required to

adjust receipts and deliveries under any Service Agreement

to reflect actual experience or to alleviate conditions

that threaten Pipeline’s system integrity, including

maintenance, or service of higher priority Shippers or



(d) Pipeline shall recover any costs and penalties incurred by

Pipeline under an OBA through the system balancing cost

reconciliation mechanism under GT&Cs Section 19.6.